MSE News: Cheapest five-year fix mortgage in a year launched by Co-op

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"It comes on the back of other lenders cutting rates as banks and building societies make their deals more accessible ..."

Read the full story:

Cheapest five-Cheapest five-year fix mortgage in a year launched by Co-op

JimmyTheWig

I think I read the other day that LIBOR rates are going up. Isn't that what long-term fixes follow?
In which case, what's happening??

beecher2

If I was sitting on the SVR, I'd be applying for that one in a flash.

bazza1603

Talk about timing..... I was on the phone to First Direct about to sign up to there 4.29 5 percent deal.

If I meet all the requirements, and the mortgage allows overpayments thats a nice £20 a month saving, or if I pay the same I can reduce the term by a year!

Thanks MSE!

SimbaSimon

The fact that 5 year fixes are reducing means lenders don't believe the base rate will rise much in the future. If they did think it was to rise much higher then they wouldn't be lowering these rates as it'd eat into their profit. So for now I'll stick with the SVR (plus the fact that I have no choice as I don't have a equity for a deal like this!)

Pincher

SimbaK2K wrote: »

The fact that 5 year fixes are reducing means lenders don't believe the base rate will rise much in the future. If they did think it was to rise much higher then they wouldn't be lowering these rates as it'd eat into their profit. So for now I'll stick with the SVR (plus the fact that I have no choice as I don't have a equity for a deal like this!)

I want that to be true, too, because I can't get the 3.99% deal either. I can comfortably afford it, but the lenders think in terms of I can't afford it in the sixth year if rates shoot up to 10%!? That's why I want to fix at 3.99%, where I CAN afford it!

Unfortunately, the funding structure does not always work that way.
The Building Society can issue a five year fixed rate bond, ISA or not,
at 3.75%, and they are making money on the 0.24% + £999 fee + add-on products. This is independent of interest rate expectations.

HYVAUX10

Coop mortgage well worth looking at

Some possible hidden advantages - Coop membership card ( loyalty card) giving points which build up to a twice yearly cash payout ( similar to the old Coop Dividend for those over 50 who may remember it)
Can be used at coop shops, garages, insurance, funeral care.

I believe membership points are also given on money banked with, loaned from and on mortgages held with The Coop.

HYVAUX10

Paulgonnabedebtfree

SimbaK2K wrote: »

The fact that 5 year fixes are reducing means lenders don't believe the base rate will rise much in the future. If they did think it was to rise much higher then they wouldn't be lowering these rates as it'd eat into their profit. So for now I'll stick with the SVR (plus the fact that I have no choice as I don't have a equity for a deal like this!)

I don't have the equity either plus my large unsecured debts would count against me.
If there were a hope in hell of getting this deal, I reckon I would go for it.

traceyr

We are in the process of getting a mortgage with Woolwich. We have gone for a 2 year fixed rate at 3.59% with a fee of £199. We have not completed yet and I am so tempted to pay the £150 cancellation fee and go with this mortgage to give us peace of mind for the next 5 years.

bazza1603

Just some info about the Mortgage.

I found The Britannia quicker to deal with. Coop were going to ring me back tomorrow. Britannia processed application straight away

You can overpay 10 percent of the balance a year.
Can add £849 of the fee to the mortgage. You have to pay the £150 upfront
They are allowing me to add my existing ERC to this mortgage.